The cars pass in front of a Walmart store in Washington, DC, on August 18, 2020.
Nicholas Kamm | AFP | Getty Images
Walmart has captured two veteran Goldman Sachs bankers to help lead its new fintech technology launch as the company looks beyond retail to generate revenue.
Omer Ismail, who runs Goldman’s consumer bank, and David Stark, another Goldman banker, leave for the retailer. A Goldman Sachs spokesman confirmed his departures. Bloomberg first reported the news.
Walmart announced in January that it was creating a new company to develop unique and affordable financial products for customers and employees. It has merged with Ribbit Capital, a venture capital firm, but will own a majority stake in the start-up. Walmart did not share the company name even when services would be available. Walmart executives, including chief financial officer Brett Biggs and Walmart U.S. CEO John Furner, will be part of the start-up board.
Walmart said it may acquire or partner with other fintech technology companies as part of the company.
The discount refused to share details beyond what the company previously announced.
With hiring, Walmart puts money and muscle behind its financial service ambitions. The company also highlights its strategy for the coming years. At a recent investor day, CEO Doug McMillon said the world’s largest retailer will use its size and scale to generate revenue in other areas, from opening health care clinics to converting data. of consumers in specific ads. He said Walmart will deepen customer loyalty with a growing ecosystem of products and its subscription service, Walmart +. He plans to step up investments to make that happen, raising them to about $ 14 billion this year compared to the company’s typical annual rate of $ 10,000 to $ 11 billion.
Walmart already offers some financial services, such as a prepaid debit card that customers can charge with money and use for purchases. The card is also an alternative for people who may have a challenged credit history, with features such as overdraft or monthly fees and no minimum balance required.
The company’s shares have risen nearly 23% over the past year, bringing its market value to more than $ 374 billion.